fairvalues^©

Return, risk and time are the three key dimensions to be considered in investment decisions.

Hence, fairvalues© is designed to provide instantly comprehensible risk-return-time-benchmarks to serve as an input for a guided tour through the facts of the global investment universe, enabling users to make fully informed investment decisions.

fairvalues© provides the basis for a consistent client advisory process which fulfills the regulatory requirements and allows the ongoing testing of investments regarding clients’ suitability and appropriateness. fairvalues© ensures a stringent communication of investment information and monitoring of investment portfolios. This allows to enhance the reliability of traditional and the development of digital advisory offerings.

Agile investing

fairvalues© enables users to explore the risk-return universe of financial instruments and to systematically test their willingness and capabillity to take on risk for return. It takes three steps to construct and manage a unique portfolio for each individual client.

Starting Point

fairvalues© provides users with daily updated risk-return estimates.

 

1	Define constraints and exclusion criteria Users initialise fairvalues© agile investment approach by specifying: Constraints: budget, time horizon, currency  Exclusion criteria: countries, sectors, instruments
2	Testing Based on estimated risk-return benchmark users can challenge their willingness and capability to take on risk for return and find out their assets meeting their goals. fairvalues© offers a visualised guided tour through the risk-return landscape to help find answers for the following key questions of investment:
	How much return the investor is prepared to sacrifice to reduce risk of loss? How much loss can an investor bear? What is the minimal return the investor expects to receive for the taken risk exposure? This process will generate the following results: (1) users have systematically tested suitability and appropriateness of their investment decisions, being fully informed regarding the performance facts of financial markets, (2) list of financial instruments compliant with investors’ goals
3	Investing and controlling  Given the securities in line with the goals of an investor fairvalues© allows to efficiently optimise portfolio diversification by maximising expected return. fairvalues© enables users to systematically monitor the performance of single instruments and portfolios based on user preferences and restrictions. Results: (1) individually optimal portfolios (2) continuous controlling reports and alerts

 

Agile investing use cases

fairvalues© agile investing approach gives a financial services provider the ability to handle the following tasks

• Product selection
  • Identification of financial instruments meeting their individual clients and client categories goals
  • Preparing lists of financial instruments to be recommended to their clients
• Client advice
  • Guide clients to find suitable and appropriate financial instruments 
  • Individualised investment offerings
  • Continuous review of investments 
  • Identify in advance clients whose portfolios may move outside clients’ risk-return limits
  • Portfolio adjustments propositions
  • Promptly alerting clients
• Online advice for a self-guided investor by a visualised InvestmentGuide©

• Controlling
  • Ability to have transparent visibility across portfolios of the entire client base
  • Control instruments and performance
  • Advice quality insurance by identification of best and worst performing portfolios
  • Substantiation for reasoning

fairvalues© approach to risk-return-time-estimates builds on well-established findings of quantitative finance research. The focus of fairvalues© risk-return-time-estimates is the ultimate payoff. By focusing on the ultimate payoff and evaluating assets’ performance in different currencies fairvalues© allows to impartially compare financial instruments across the global universe.

fairvalues© investment benchmarks are the result of a proprietary estimation process:

1. Data evaluation and cleansing
2. Multiple estimation approaches to calibrate simulation models
3. Performance simulation taking into account multiple scenarios
4. Calculation of investment risk-return-time benchmarks
5. Risk-return-time performance ratings are based on the global performance distribution

With fairvalues© financial institutions receive accurate risk-return-time-estimates and assessments of financial instruments world-wide, conveyable immediately to investors.